Monday, May 4, 2015

Metal Commodities and Recycling Report, Raleigh Scrap Metal Recycling, 2310 Garner Rd, Raleigh, NC, 27610, 919-828-5426



MAY 4TH, 2015 


RALEIGH, NC, 27610

This is the Commodities and Recycling report, brought to you by BENLEE the industry leader in roll off trailers and open top scrap trailers, as well as Raleigh and Goldsboro Metal Recycling, the leaders in North Carolina for Scrap Metal, Cardboard, Electronics and Junk Cars. 

Today is Monday, May 4 th, 2015.  My name is Greg Brown, President and CEO of the companies.

While volumes coming in to recycling operations remain severely depressed, there was some positive news in the commodities markets last week.

raleigh metal recycling
AMM - Steel Production Graph - Raleigh Metal Recycling Steel Prices

Steel production in the United States hit a two month high and at least two steel mills announced $20 per ton price increases. 

raleigh scrap metal recycling
AMM - Scrap Metal Prices Graph - Raleigh Metal Recycling (919) 828-5426

This is leading many to believe that the stabilization in scrap steel prices in recent months will lead to increases this week as we enter ferrous trading week.  In fact there was word of at least one up market last Friday.  On the negative side, despite oil prices now near 4 month highs, the oil rig count, hit a new multi-year low last week.  

With the rig count at 679 rigs that is a staggering 58% below last October’s high of 1,609.  Of course this is important due to drilling rigs use enormous mounts of steel. 

raleigh metal recycling
WTRG Economics - Saudi Arabia Rig Count Graph - Raleigh Metal Recycling

Interestingly, Saudi Arabia is doing all it can to keep prices low and to have the U.S. reduce our drilling.  Their rig count has been hitting historic highs in recent months.  Also, last week the large publically traded company, Waste Management released their earnings. 

While they were up, they said that recycling commodities, which were forecasted to be a drag on earnings of 3-5 cents per share, was now going to be worse, and would be a drag of about 10 cents per share.  This is just another sign that while we see some green shoots in the recycling, things are far from great.

raleigh scrap metal recycling
CME Group - Copper Prices Graph - Raleigh Scrap Metal Recycling

As for positive news, last week’s good economic news in Europe, caused the Euro to strengthen to a two month high of 1.12 to the dollar, up from $1.05 of a few weeks ago.  The weakened dollar was a key reason, that copper hit multi month high last week.

raleigh metal recycling
Kitco - Aluminum Prices Graph - Raleigh Metal Recycling

Aluminum, while not back to where it was about 6 months ago, hit at multi month high and is now actually higher than it was a year ago.

raleigh scrap metal recycling - US Personal Saving Graph - Raleigh Metal Recycling

There has yet to be a major translation to consumers spending money saved on gas at the pump, but when that happens, steel consumption should rise.  At this point, consumers are choosing to save this extra money.  We remain optimistic that consumer spending will soon rise and will help recycling volumes, prices and steel production.
There was bad news for a number of scrap yards and demolition customers last week in that they received letters from the bankruptcy court for Hayes Iron and Metal, demanding a “Claw Back”. 
A claw back is when a company goes bankrupt if the court can prove preferential treatment of suppliers, the court can demand money back that was paid out 90 days, before the bankrupt filing. 

There were no changes to our copper prices in North Carolina last week, with our Raleigh prices of #1 copper being purchased for $2.36 per pound.  Prepared Steel is still being purchased for $6.25 per hundred pounds.

With that we hope all have a Safe and Profitable week.   Tune in next week for the Commodity and Recycling report.